Configure tax collection

Exclusive tax is added on top of the price (e.g., $100 + 10% tax = $110 total). Inclusive tax is already included in the price (e.g., $100 total with 10% tax means $90.91 + $9.09 tax). Most US businesses use exclusive pricing, while many European businesses use inclusive pricing with VAT.

Yes. Create a tax rate with your VAT percentage and mark it inclusive if your prices already include VAT. One thing to watch: an inclusive rate only works on prices you've also marked inclusive in Stripe. Mix an inclusive rate with an exclusive price and Stripe won't apply it — the line shows as "Not taxed" on the review screen. Match the two and it works.

Not right now. One rate applies to the whole cart. If you sell items taxed at different rates — a zero-rated book and a taxable service, say — ring them up as separate charges so each gets the rate it should. Per-line-item tax rates are on our list.

Remove the rate before you take the payment. Open Stripe Account > Tax Rates, swipe the active rate, and tap "Remove from Cart". The charge goes through with no tax added. Put it back before your next customer — the setting sticks until you change it.

Yes, if you turn on "Collect tax automatically" in Settings. That's Stripe Tax, and it works out the rate from your business address. It replaces manual rates rather than stacking with them. With it off, the app uses whichever rate you've applied and won't vary it by customer location.